How to Quickly Analyze a Rental Property for Cash Flow in 2024

Here’s how to analyze a rental property in just twenty minutes. You don’t need to know any math or formulas to do it; all you need is a potential rental property, some time, and the BiggerPockets Rental Property Calculator (which you can try for free!). In today’s video, Dave will show you how to analyze a rental property in five steps to easily calculate cash flow, cash-on-cash return, and more key metrics to help you decide on a deal.

ANY beginner can use these simple steps to see whether their deal is worth doing. If you’re a new investor, do NOT trust the “back of the napkin” math when running your numbers. Follow these steps to quickly locate rental property comps, calculate ARV (after repair value), and find ways to increase your potential property's cash flow. Plus, we’re showing you where to get ALL the data you need to do these calculations. Ready to buy your first rental? Got twenty minutes? Let’s get into it!

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00:00 How to Analyze a Rental
01:52 Picking a Rental Property
03:21 1. Property Info
03:59 2. Purchase Price
09:51 3. Loan Details
10:20 4. Rental Income
13:18 5. Expenses
16:01 Cash Flow and Returns
21:15 Get This Right!

[grabthemappodcast]

A great guide for navigating the complexities of deal analysis. I liked how you showed each step clearly and explained the reasoning behind conservative estimates.

[HarjeetBSingh]

Extremely helpful video! Thank you for sharing your knowledge in such an understandable manner.

[eddieave]

Great video. Thanks for sharing this valuable information!

[Indrajiot]

I hate when y’all do that. Closing cost be 3-4 percent on average. Stop saying 1.5 percent!

[jasonhowell]

Fyi, for the town Waxahachie, "Wax" is not pronounced as in "candle wax." It is pronounced "Wahx" as in when a doctor asks you to open your mouth and say, "Ahh."